Sarojini Naidu Vanita Pharmacy Maha ... vs Assessee

Income Tax Appellate Tribunal13 March 2015

CitationITA.No.725/Hyd/2011 - Assessment Year 2007-2008

Ratio decidendi

The rule this decision rests on

The grant of a stay of recovery of tax demand pending appeal rests on the principle that the assessee must show a strong prima facie case and that the balance of convenience favours it; the Tribunal, being satisfied on both counts on the materials before it, held that this was a fit case for an absolute stay for six months or until disposal of the appeal, whichever is earlier, and directed lifting of the attachment on the assessee's bank accounts.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

IN THE INCOME TAX APPELLATE TRIBUNALHYDERABAD BENCHES "B" : HYDERABADBEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBERANDSHRI SAKTIJIT DEY, JUDICIAL MEMBERS.A.No.12/Hyd/2015Arising out ofITA.No.725/Hyd/2011 - Assessment Year 2007-2008M/s. Sarojini Naidu Vanita The DDIT (E)-1Pharmacy Maha Vidyalaya vs. HyderabadHyderabadPAN AADAS1055R(Applicant) (Respondent)For Applicant : Mr. C.P. RamaswamiFor Respondent : Mr. Ramakrishna BandiDate of Hearing : 13.03.2015Date of Pronouncement : 13.03.2015ORDERPER SAKTIJIT DEY, J.M.

This stay application has been filed by the assessee seeking stay of outstanding demand of Rs.55,64,786.

2. Learned A.R. submitted before us that the assessee being an educational institution is entitled for exemption under section 10(23C)(vi) of the I.T. Act, 1961. It was submitted that in fact the CCIT-III, Hyderabad after disposal of assessee's appeal by the Ld. CIT(A) has granted approval under section 10(23C)(vi) which is applicable to the impugned assessment year. Hence, the assessee is exempt from payment of income tax. It was further submitted that the A.O. in the meanwhile has issued an attachment notice to the State Bank of Hyderabad, Exhibition Ground, Hyderabad attaching all the accounts of the assessee with the said Bank and has also recovered an amount of Rs.6,11,000 from the maturity amount of some fixed deposits. Learned A.R. 2 SA.No.12/Hyd/2015 in ITA.No.725/Hyd/2011 M/s. Sarojini Naidu Vanita Pharmacy Maha Vidyalaya, Hyderabad.

submitted that as the assessee is having a strong prima facie case and balance of convenience is also in favour of the assessee recovery of the outstanding demand may be stayed.

3. Learned D.R. on the other hand, has opposed grant of absolute stay.

4. We have heard the parties and perused the materials available on record. After considering the prima facie case and balance of convenience, we are convinced that it is a fit case where absolute stay should be granted. Accordingly, we direct stay recovery of the outstanding demand for a period of six months from the date of this order or till disposal of the appeal, whichever is earlier. Concerned ITO is also directed to lift the attachment order as issued to the State Bank of Hyderabad, Exhibition Grounds, Hyderabad attaching the accounts of the assessee.

5. In the result, stay application of the assessee is allowed.

Order pronounced in open Court on 13.03.2015.

Sd/- Sd/- (P.M. JAGTAP) (SAKTIJIT DEY) ACOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated 13th March, 2015 VBP/- Copy to :

1. M/s. Sarojini Naidu Vanita Pharmacy Maha Vidyalaya, Hyderabad. C/o. Dr. C.P. Ramaswami, Advocate, Flat Nos. 102 & 303, Gitanjali Apts., Plot No.108, Srinagar Colony, Hyderabad - 500 073.

2. The DDIT (Exemption)-I, Hyderabad.

3. CIT(A)-IV, Hyderabad.

4. DIT-(Exemptions), Hyderabad.

5. D.R. ITAT 'B' Bench, Hyderabad.

6. Guard File

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